For the billions of people around the world who consider coffee a daily mainstay, few things bring us more morning joy than the smell of a freshly brewed cup of coffee, espresso, or, if you're less picky, instant coffee.
About 75% of Americans drink coffee regularly, with the bulk of the population drinking two or more cups every day. This highly caffeinated habit can add up, so many of these more frequent drinkers look to trim costs by brewing their own joe at home.
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One of the most popular coffee-at-home brands is Nestle (NSRGY), which owns popular labels like Nespresso, Nescafe, and Blue Bottle. And it offers a range of tastes and price points. Perhaps you're fancy with your own Nespresso Vertuo Creatista machine, which costs upward of $750. Or maybe you keep it simple with Nescafe Instant Coffee, which makes 150 cups for under $10.
Nestle Mulls Fate of Instant-Coffee Plant
If you do happen to fall under the category of folks who enjoy a cheap cup of instant coffee, your morning cup may soon come from a very different part of the country.
That's because Nestle is “considering options” for its instant-coffee plant in Freehold, N.J., about 1 1/2 hours south of Manhattan, Food Dive reports.
In an email a Nestle spokesperson said the Swiss food and beverage giant is mulling the fate of the manufacturing plant. The facility, now employing 227 people, opened in 1948 and includes a lot of considerably outdated equipment.
“As Nestlé evolves to meet consumer needs now and in the future, we must ensure our manufacturing network is dynamic and set up to support our business,” the spokesperson said.
The company hasn't indicated that its instant coffee itself is on the chopping block; for now, it seems that only the factory is up for discussion.
"Automation and other forms of technology are constantly improving, and to stay competitive, food and beverage companies are faced with deciding how to best spend their money," Food Dive notes.
"In many cases, that means closing aging plants rather than retrofitting them. It’s often easier and less costly to move production to another location across their existing network or to build a new plant."
While instant coffee may not be America's favorite type of coffee, it's well-documented that half the world actually prefers the stuff.
The vast majority of folks in Eastern Europe, Asia, and the Middle East actually prefer it to "fresh coffee," or what Americans think of as just a regular cuppa joe.
